Lessons learned Energy Networks 2018 Sydney, 6 June 2018 - PowerPoint PPT Presentation

ESCRI-SA Battery energy storage - Lessons learned Energy Networks 2018 Sydney, 6 June 2018

Presentation outline > South Australian power system context > ESCRI-SA project • Background • Project overview • Status update > Lessons learned/ challenges 2

About ElectraNet Owner and operator of South Australia’s transmission network > Connecting customers and moving power over long distances Private company with 3 major > shareholders (State Grid Murraylink Corporation of China, YTL Power Interconnector and Hastings Funds (Direct current 220 MW) Management) Total regulated assets of $2.5 > billion Network covers area of over > 200,000 square kilometers 91 high voltage substations > 5,600 circuit km of high voltage > transmission lines and cables Heywood Interconnector (currently 600 MW) 13,700 transmission towers > NEM – National Electricity Market AEMO – Australian Energy Market Operator 3

South Australian power system context

South Australian system overview South Australia (SA) is at the forefront of energy transformation > Abundant high quality renewable energy resources with leading wind and solar penetration levels compared to demand > Last coal fired power station closed 2016 Murraylink Interconnector > Reliance on gas generation and impact (Direct current of higher gas prices 220 MW) > Recent SA separation and load shedding events have led to heightened concerns about power system security > New measures have been introduced by AEMO and the SA Government to manage power system security > Ongoing policy drivers to lower carbon emissions, new technology and Heywood Interconnector (currently 600 MW) customer choice are driving energy NEM – National Electricity Market transformation AEMO – Australian Energy Market Operator 6

SA renewable energy integration The challenges seen in SA in relation to minimum levels of synchronous generation are a first in any large scale power system in the world… Source: AEMO, South Australian System Strength Assessment, September 2017 > SA is unique compared with other major systems with high levels of wind: Denmark – has many interconnections with neighbouring countries Ireland – restricts non-synchronous generation to 55% penetration levels Germany – has many interconnections with neighbouring countries Texas – has low levels of wind relative to system demand 6

ESCRI-SA project background Energy Storage for Commercial Renewable Integration – South Australia

Project development history ESCRI-SA Phase 1 – Business Case exploration November 2014 to Examined regulatory, commercial, technology and technical issues and publicly reported results – Business case for a 10 MW, 20 MWh battery was poor December 2015 ESCRI-SA Phase 2 – Expression of Interest for delivery phase 30 MW, 8 MWh battery for targeting fast frequency response, but unable to monetise – Benefits March to July included increased Heywood Interconnector import capability, reduced unserved energy, and market 2016 price cap trading. Business case improved ESCRI-SA Phase 2 – Full Application for delivery phase Same 30 MW, 8 MWh battery but with fast frequency response system security benefit monetised January to (reducing Heywood Interconnector import constraints) and ancillary services revenue (FCAS) March 2017 added. ARENA grant funding of up to $12m required. 8

Project scope and objectives Scope: Nominal 30 MW, 8 MWh (after 12 years) lithium-ion battery energy storage system (BESS) > Demonstrate that grid scale battery storage can effectively provide network reliability and security services alongside competitive energy market services > Demonstrate network ownership of battery storage and appropriate commercial separation of the provision of regulated services and competitive market services > Demonstrate islanded operation with 100% renewable generation following transmission outages 9

Location Site selected to maximise value from BESS > Connection at 33 kV at Dalrymple substation on Yorke Peninsula > Opportunity to reduce expected unserved energy under islanding conditions (max demand is about 8 MW but on average need about 3 MW for 2 hours) > Close to the 91 MW Wattle Point Wind Farm (AGL operates) – provides opportunity for BESS to support islanded operation with the wind farm and 2 MW of local rooftop solar, following network outages BESS – Battery Energy Storage System 10

ESCRI-SA project overview www.escri-sa.com.au

BESS provides a range of services Benefits used (in bold below) in business case depend on specific application Component Service / Benefit BESS ESCRI-SA application  Cap trading Market service Energy Energy time shifting  AGL may use Energy security  Not applicable  USE reduction Regulated service Network reliability / Capital deferral  Not applicable support  Voltage & reactive control Especially in island operation  Short term spinning reserve Not applicable Frequency  FCAS Market service control  Fast Frequency Response Regulated service Fault level  Island operation Safety  Black start Island operation 12

Commercial arrangements Providing both regulated and competitive market services Operating ElectraNet Principles ARENA Funding and owns BESS & AGL grant part commercials provides regulated leases BESS funding Availability services from ElectraNet Guarantee and is BESS operator (12-year lease) Assets and ESCRI SA operation Operational BESS control Competitive market Regulated services Services provided services to customers and Reduced unserved energy FCAS NEM participants Fast frequency response Market caps Benefits Payments EPC/ D&C contract and 12-year maintenance agreement awarded to Consolidated Power Projects (CPP) following extensive procurement process 13

Operating principles Battery Operating Agreement prioritises and protects regulated services Level of charge at 33kV for With Windfarm Without Windfarm non-regulated services coordination coordination X – 0.8 MWh Max allowable level of charge X Min allowable level of charge 0.8 MWh 4.8 MWh 14

Islanded operation ESCRI-SA BESS manages transition and then controls the island > Islanding detection • Topology-based Islanding Detection Scheme (IDS) • Anti-islanding protection to disconnect BESS under certain conditions > Transitioning to an island • Disconnect 80% of Wattle Point wind farm (operated by AGL) > Islanded operation with BESS as island grid master control: • Voltage and frequency reference • Wind farm generation dispatch – to manage BESS charge level • Fault current provision & distribution protection • Black start (if required) 15

ESCRI-SA status update www.escri-sa.com.au

ESCRI-SA BESS – Dalrymple North 17

Project milestones Key deliverable Date 21 Sep 2017 Financial close and contract award Energisation of BESS 30 Apr 2018 AEMO registration of BESS 5 June 2018 Commissioning and handover of operation Jun-Jul 2018 to AGL Energy ARENA reporting and knowledge sharing May 2020 period ends (two years) 18

Batteries 19

Inverters 20

Transformers 21

Lessons learned & Challenges www.escri-sa.com.au

Lessons learned/ challenges > Each battery project appears to have its own set of unique challenges and some learnings are quite project specific > Learnings/ challenges have included… • demonstration project with an aggressive timeline • regulatory treatment • obtaining equipment models and evaluation of Generator Performance Standards (GPS) • clarifying AEMO registration and metering requirements • improving understanding of performance parameters • islanding challenges 23

Regulatory treatment > Acceptance of a service based approach to regulation > Create a new battery registration category under the National Electricity Rules that picks up relevant generation registration and charging/ discharging requirements so AEMO can manage constraints in market systems > Current requirement to register as a scheduled load as well as a scheduled generator raises TUOS implications, jurisdictional licensing obligations etc. > AER approved cost allocation approach, but AER suggested further work is required to develop a more general cost allocation approach for assets providing both regulated and competitive energy market services 24

Modelling and GPS > Developing compliant models for equipment introduced for the first time in the NEM is complex and time consuming > Start process early, engage early and regularly with all participants, including AEMO > The requirements of the grid forming mode (seamless islanding) formed the fundamental basis of development – this in some instances constrained grid connected modes, e.g. speed of response 25

Licensing and Registration > Remember jurisdictional requirements (these vary by state) > National Grid Metering requirements > Managing around set schedules: • ESCOSA board requires one month to review before granting a license • AEMO registration committee • Review of commissioning test plan > Early engagement and good collaboration went a long way! 26